Brokerage Billionaire Warns Against Shorting AMC, Meme Stocks: Prices Could Hit ‘Unimaginable Highs’

Brokerage Billionaire Warns Against Shorting AMC, Meme Stocks: Prices Could Hit ‘Unimaginable Highs’

Share to Linkedin As shares of AMC Entertainment and other so-called meme stocks recoup losses Monday, billionaire Thomas Peterffy, the founder and chair of Interactive Brokers, cautioned investors against shorting the crop of volatile stocks, saying prices could continue to hit meteoric highs for an indeterminate amount of time before eventually crashing down to fundamental values. "Unless you have huge liquid resources, please try to resist the temptation," Interactive Brokers ... [+] Chair Thomas Peterffy said Monday. On CNBC's Squawk Box, Peterffy warned investors thinking about betting against AMC and other meme stocks by shorting their shares, saying their prices could skyrocket to "unimaginable highs before they settle down to a reasonable valuation." Despite warning that shares could skyrocket further, Peterffy also said it would be "impossible" for the stocks to hold on to meteoric gains because "more and more people will be short" shares if prices continue to climb. "Eventually these stocks will go back to their value which is roughly single-digit dollars“”if that," the 76-year-old said, ultimately recommending against holding on to shares. Shares of AMC were surging more than 15% Monday, pushing the stock's gains to 2, 700% this year alone“”more than 20 times the best-performing stock